Won Hee-ryong "June Housing Subscription System Improvement Plan... GTX-D, E, F Feasibility Studies Within Term" (Comprehensive)

Ministry of Land, Infrastructure and Transport Minister's Press Briefing
"GTX A, B, C Construction to Start Within Term, D, E, F Pass Preliminary Feasibility"
"Dunchon Jugong Responsibility Lies with Parties... No Government Intervention Precedent"
"Gimpo-Haneda Flights to Resume Possibly June 1"

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is speaking about the policy direction of the Ministry of Land, Infrastructure and Transport at a press briefing held at a restaurant in Eojin-dong, Sejong City on the 23rd.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, identified the price ceiling system for pre-sale apartments (Bunsangje) as the first system in need of improvement to promote housing supply and announced plans to unveil improvement measures within June. He also stated that, marking two years since the introduction of the contract renewal request right, and with anticipated instability in the rental market in the second half of the year, measures to alleviate this will also be presented within June. Regarding the Metropolitan Area Express Train (GTX), he pledged to commence construction of lines A, B, and C during the Yoon Seok-yeol administration’s term and to have lines D, E, and F pass the preliminary feasibility study (PFS).

◆ "Bunsangje Improvement Plan to be Disclosed in June... Multi-homeowners Should Not Be Demonized"

On the 23rd, Minister Won held his first press briefing since taking office at a restaurant in Eojindong, Sejong City, where he responded to questions regarding future housing supply plans and GTX policy directions.

Minister Won first emphasized the importance of rapid housing supply and stressed the need to improve the Bunsangje system for this purpose. He said, "I consider Bunsangje the first system that needs to be revised to promote supply," adding, "We are preparing improvements to the timing of applying the price ceiling, its content, and rigidity within June to better align with future market movements."

Additionally, he pointed to multi-homeowners as a means to encourage the release of existing properties into the market beyond new supply. He stated, "The previous government imposed uniform regulations without considering why multi-homeowners exist or their role as housing suppliers, which has led to significant side effects," and added, "Since multi-homeowners play a role as suppliers in both sales and rental markets, we will not ignore this and will reflect it in policy."

View of Seoul city from Lotte World Tower Seoul Sky in Songpa-gu, Seoul / Photo by Jinhyung Kang aymsdream@

◆ Expansion of 'Good Landlord' Incentives Under Review... Minimizing Rental Crisis in Second Half

Regarding concerns about instability in the rental market in the second half of the year, Minister Won said that mid- to long-term improvements to the three lease laws are being considered. He first acknowledged, "It is true that the rental market tends to have a low season in the first half and a high season in the second half, with relocation demand concentrated in the latter," diagnosing that "there is a possibility of supply-demand imbalance in the second half."

He continued, "We are reviewing immediate institutional measures to promote the supply of rental properties," mentioning, "There are aspects where properties are locked up due to mortgage loans, Bunsangje, and related owner-occupancy obligations." This is interpreted as an intention to ease such regulations to encourage these properties to enter the rental market.

In the mid- to long-term, plans to provide incentives to landlords are under consideration. Minister Won said, "There is no reason not to provide tax and financial benefits to landlords who renew contracts multiple times and reduce rents to registered rental levels." He explained, "While excessive speculation will be curbed, we will avoid categorically defining and demonizing multi-homeowners."

Regarding remodeling and reconstruction of first-generation new towns, he emphasized a sequential and comprehensive approach. He said, "There are apartments built in 1977 and many places are aging daily," adding, "(Remodeling and reconstruction) will not be approached solely as first-generation new towns." Minister Won stressed, "We will establish and proceed with measures fairly and orderly so that issues like whether only first-generation new towns receive special treatment do not arise," and added, "Seoul city will be handled separately, first-generation new towns separately, and comprehensive plans will be made according to the degree of aging, overall order, and characteristics."

◆ "GTX A, B, C Construction to Start Within Term; D, E, F to Pass Feasibility Study"

Regarding GTX, Minister Won pledged to start construction of lines A, B, and C within his term and to have lines D, E, and F pass the preliminary feasibility study. He emphasized the importance of GTX in housing policy, stating, "GTX is the key to dispersing the scarcity value of locations in the housing market."

He also referenced the drama My Liberation Diary. The drama depicts the hardships of Gyeonggi residents commuting to Seoul from the fictional city of 'Sinpo-si.' Minister Won said, "There is a poignant scene where the characters leave work while it is still light but arrive home to darkness, which resonates deeply."

Regarding the selection of GTX lines, considerable complaints and noise are expected. Minister Won said, "Property rights maps will change according to GTX lines, and we are prepared for the resulting complaints," emphasizing, "We have no choice but to approach this from an urban engineering perspective." He explained, "GTX will not just end at the lines it passes through but will be connected to branch and main lines, residential areas, future mobility, and a revolution in movement, and we will review the GTX project from a long-term perspective."

◆ "Regarding Dunchon Jugong, We Cannot Set a Precedent of Government Intervention When Things Get Noisy"

Regarding the ongoing construction halt at the Dunchon Jugong reconstruction site in Gangdong-gu, Seoul, Minister Won said, "The primary responsibility to resolve the situation lies with the parties involved." When asked about the possibility of government intervention in the Dunchon Jugong situation, he stated, "We cannot set a precedent that the Ministry of Land steps in whenever things get noisy."

However, Minister Won acknowledged, "It is true that Dunchon Jugong accounts for 12,000 households and a significant portion of next year’s supply," adding, "I hope the situation is resolved amicably as soon as possible and serves as a starting point for smooth progress in other regional redevelopment projects."

According to the redevelopment industry, the Ministry of Land, Seoul City, and Gangdong District Office will conduct a joint inspection of the overall management status of the Dunchon Jugong reconstruction association from today until July 3. Minister Won said, "Once the investigation is complete, we will make decisions on ways to overcome the situation without sending wrong signals to the market." He added, "If problems have arisen due to central government policies or if central government policies can be used to facilitate resolution, we will not hesitate to provide such measures and support."